acc220_appendix_c - company can stay profitable and that...

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Axia College Material Appendix C Budgets Matrix Directions : Using the matrix, define each of the budgets listed and briefly describe its uses. Budget Definition Describe its uses Sales budget It’s the representation of management’s best estimate of sales revenue for the budget period. Is to be able to accurately pinpoint how much material will be needed to accommodate consumers Production budget Shows the units that must be produced to meet anticipated sales This budget can prevent excess usage and layoffs, or can stop shortages that can cost the company money in sales and overtime. Direct materials budget Shows quantity and cost of direct materials to be purchased It helps plan out how much production of making your product is going to cost. Direct labor budget Contains the quantity (hr) and cost of labor necessary to meet production This budget is used to make sure that the
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Unformatted text preview: company can stay profitable and that the workforce is doing their job. Manufacturing overhead budget The expected manufacturing cost for the budget period This will show the budget for the variable and fixed cost of the overhead like production, labor rates Selling and administrative expense budget This is the budget for anticipated selling and administrative expenses It is again going to show the variable and fixed cost of doing business. Budgeted income statement This indicates the expected profitability of operations What the company is going to be able to make in a given year profit wise, after all the overhead and direct cost Cash budget Shows anticipated cash flow This will show the beginning balances and end, with the sections of receipts, and disbursements and financing. ACC 220 ACC 220...
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acc220_appendix_c - company can stay profitable and that...

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